Terex Corporation · NYSE:TEX
Terex — Investor Day (December 2022)
88 slides from Terex's investor day presentation, Dec 13, 2022
Slide 1: 2022 Investor Day
2022 INVESTOR DAY December 13, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain information in this presentation includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future even
Slide 3: Agenda
AGENDA Transformed & Positioned for Profitable Growth 1 John Garrison, Chairman & Chief Executive Officer Materials Processing | Consistently High-Performing Portfolio 2 Kieran Hegarty, President, Terex Materials Processing 3 Question & Answer Genie | Profitability Through the Cycle 4 Simon Meester,
Slide 4: Terex | Video
TEREX | VIDEO © 2022 Terex Corporation 3
Slide 5: Transformed & Positioned for Profitable Growth
TRANSFORMED & POSITIONED FOR PROFITABLE GROWTH John Garrison Chairman & Chief Executive Officer
Slide 6: Compelling Investment Opportunity
COMPELLING INVESTMENT OPPORTUNITY Transformed and diversified industrial leader well-positioned for profitable growth Excellent portfolio of market-leading businesses positioned to benefit from secular megatrends Operating system enables profitability through cycles and high returns on invested capi
Slide 7: Our Purpose, Mission and Vision
Our To help improve the lives of Purpose people around the world Our Mission To provide solutions to our machinery and industrial product customers that yield superior productivity and return on investment Our Vision ✓ To be the safest and best place to work in the industry ✓ To be the most customer
Slide 8: Experienced, Agile Executive Leadership Team
EXPERIENCED, AGILE EXECUTIVE LEADERSHIP TEAM John L. Garrison, Jr. Julie A. Beck Kieran Hegarty Simon A. Meester Chairman & SVP & President, President, Chief Executive Officer Chief Financial Officer Terex Materials Processing Genie Stacey Babson Kaplan Andrew K. Campbell Amy J. George Scott J. Posn
Slide 9: Unwavering Commitment to Safety and Values
UNWAVERING COMMITMENT TO SAFETY AND VALUES Total recordable Incident rate* Lost time Injury rate* Down Down 49% 64% TEREX WAY VALUES INTEGRITY • RESPECT • IMPROVEMENT • SERVANT LEADERSHIP • COURAGE • CITIZENSHIP *2022 vs 2016 © 2022 Terex Corporation 8
Slide 10: Team Members: Our Greatest Asset & Best Investment
TEAM MEMBERS: OUR GREATEST ASSET & BEST INVESTMENT A Strong and Supportive Committed to Helping Team Team Committed to Diversity, Equity Members Reach Safe Work Practices and Inclusion Their Full Potential © 2022 Terex Corporation 9
Slide 11: ESG Is Embedded in Our DNA
ESG IS EMBEDDED IN OUR DNA • Innovating Environmentally Friendly Products • Operating in Environmentally Friendly Manner Environmental • Offering 60%+ of all Terex Models as Electric or Stewardship Hybrid Electric • Targeting 15% GHG Emission Reduction by 2024(1) • Engaging Team Members Commitment t
Slide 12: We Have Successfully Transformed Our Company
WE HAVE SUCCESSFULLY TRANSFORMED OUR COMPANY… Divested capital intensive, Focused on areas with high Capitalized on operating low margin businesses growth potential, supported by system and process megatrends improvements 2020 Cost reduction / Focus Operating System enhancement NOVEMBER 2015 Simplif
Slide 13: Yielding Significantly Improved Financial Results
…YIELDING SIGNIFICANTLY IMPROVED FINANCIAL RESULTS Sales ($B) and Operating Margin Earnings Per Share ROIC (%) $7,000 ~9.5% $6,000 $5,000 $2.6 $4,000 5.4% ~$4.10 $3,000 ~20% $2,000 $3.9 ~$4.3 $1,000 $1.30 6.6% $- 2015 2022 Outlook 2015 2022 Outlook 2015 2022 Outlook Ongoing Divested Significantly im
Slide 14: Effectively Allocating Capital
EFFECTIVELY ALLOCATING CAPITAL ~$1.8B Cash Returned to Shareholders Since 2015 ~$1.0B Debt Reduction / Net Leverage Down 2.1 Turns ~$600M Capex Investments Since January 2021 ~$100M New Acquisitions / Investments © 2022 Terex Corporation 13
Slide 15: Investments in Manufacturing Capability
INVESTMENTS IN MANUFACTURING CAPABILITY Improving Safety Modernizing Watertown, Facilities South Dakota Campsie, Jiading, Northern Ireland China Hosur, Expanding Monterrey, India Mexico* Footprint Diversifying Operations Lowering Costs *In progress © 2022 Terex Corporation 14
Slide 16: Sales Outlook of ~$4.3B More Diverse in 2022
SALES OUTLOOK OF ~$4.3B MORE DIVERSE IN 2022 REPORTING SEGMENTS GLOBAL REACH CUSTOMER APPLICATIONS* 44% 56% General Infrastructure Construction Tree Care 14% Infrastructure Maintenance Electrification 8% 22% 56% Commercial/ Industrial Operations Scrap/Waste/ Recycling N. America W. Europe Materials
Slide 17: Leading Positions in Attractive Markets: $34B TAM
LEADING POSITIONS IN ATTRACTIVE MARKETS: $34B TAM Materials Processing Aerial Work Platforms Material Aggregates Environmental Concrete Handling Lifting Genie Utilities Addressable Equipment $7B $3B $1.5B $1.1B $3.4B $14B $1.6B Market #1 #2 or 3 #1 or 2 #3 Top 3 #1 or 2 #2 Position in tracked mobile
Slide 18: Positioned to Benefit from Megatrends
POSITIONED TO BENEFIT FROM MEGATRENDS INFRASTRUCTURE INVESTMENTS DIGITALIZATION >$49T Anticipated Investment Worldwide Data Center From 2016-2030(1) Construction Market Growing To >$350B By 2030(3) SUSTAINABILITY ELECTRIFICATION WASTE/RECYCLING Expected To Add 250M Vehicles Global Recycling Services
Slide 19: All Businesses Positioned to Benefit from Increased Government Spending
ALL BUSINESSES POSITIONED TO BENEFIT FROM INCREASED GOVERNMENT SPENDING TOTAL ASSOCIATED BILL TEREX OPPORTUNITY SPENDING Roads and Bridges Infrastructure Investment $1.2T Airports and Waterways Railways over 10 years and Jobs Act Environmental Power Grids $369B, anticipated to spur Clean Power Infla
Slide 20: Robust Company Strategic Framework
ROBUST COMPANY STRATEGIC FRAMEWORK Execute ✓ Safety ✓ Commercial & Operational Excellence ✓ Team: DE&I, Talent Development, Retention ✓ Scalable Company Operating System Innovate ✓ Product Development ✓ Lifecycle Solutions Development ✓ Electrification ✓ Digitization Grow ✓ Superior Customer Lifecyc
Slide 21: Strategic Organic Growth Priorities
STRATEGIC ORGANIC GROWTH PRIORITIES Capitalize Grow Materials Optimize Genie Build on Strong Parts & Services on Megatrends Processing Through the Cycle Utilities Foundation • Capturing growth in • Developing in • Through cycle margin • Maximizing new • Expanding digital circular economy adjacent ca
Slide 22: Positioned to Improve Sales and Profitability
POSITIONED TO IMPROVE SALES AND PROFITABILITY Terex Sales Target ($B), Organic Terex OP Margin Target, Organic ~$6.0+ 13.0% - 14.0% ~$4.3 ~9.5% 2022 Outlook 2027 2022 Outlook 2027 ORGANIC GROWTH TO ~$6.0B+ AT 13-14% OP MARGIN Note: Compound annual growth rate (CAGR) and bps calculated from midpoint
Slide 23: With Additional Potential for Inorganic Growth
WITH ADDITIONAL POTENTIAL FOR INORGANIC GROWTH Utilities/Infrastructure Minerals, Aggregates Waste & & Concrete Environmental Digital/Electrification Job Site Productivity/Services CONTINUE DEVELOPING AND EXPANDING PORTFOLIO TO CAPITALIZE ON MEGATRENDS AND IMPROVE SHAREHOLDER RETURNS © 2022 Terex Co
Slide 24: Compelling Investment Opportunity
COMPELLING INVESTMENT OPPORTUNITY Transformed and diversified industrial leader well-positioned for profitable growth Excellent portfolio of market-leading businesses positioned to benefit from secular megatrends Operating system enables profitability through cycles and high returns on invested capi
Slide 25: Materials Processing | Video
MATERIALS PROCESSING | VIDEO © 2022 Terex Corporation 24
Slide 26: Materials Processing
MATERIALS PROCESSING Consistently High- Performing Portfolio Kieran Hegarty President, Terex Materials Processing
Slide 27: Addressable Markets That Support Sustainability
ADDRESSABLE MARKETS THAT SUPPORT SUSTAINABILITY SERVING BROAD ~$17B ADDRESSABLE MARKET Material Aggregates Environmental Concrete Handling Lifting Diverse applications Consistent operating model $7B $3B $1.5B $1.1B $3.4B Strong channels Equipment reduces Supports recovery Increases labor Handles scr
Slide 28: Diverse Portfolio Provides a Competitive Advantage
DIVERSE PORTFOLIO PROVIDES A COMPETITIVE ADVANTAGE *Based on 2022 Outlook of ~$1.9B 52% 40% 55% Vertical Geography Channel 5% 7% 16% 6% 35% 11% 25% 20% 14% 14% Aggregates Environmental Concrete N. Ameica W. Europe ANZ/Japan Specialized Dealers Multi-Line Dealers Handling Lifting India/Asia ROW Direc
Slide 29: Vertical Business Growth
VERTICAL BUSINESS GROWTH Environmental Growth Since 2016 AGGREGATES Aggregates Growth Since 2016 ENVIRONMENTAL AllOTHER BUSINESSES Other Growth Since 2016 11 % 23 % 60 % 2016 2022 Outlook 2016 2022 Outlook 2016 2022 Outlook Legacy Offerings New Offerings Acquired Offering (CBI) New Offerings Legacy
Slide 30: Track Record of Growth and Improvement
TRACK RECORD OF GROWTH AND IMPROVEMENT MP Segment Pro Forma Operating Performance Since 2016… 15.0% – 15.3% 8.7% 14.2% 14.2% 13.2% 11.2% 11.4% Sales CAGR 9.4% $1.6 $1.6 $1.7 $1.9 17.4% $1.2 $1.3 $1.3 OP CAGR 2016 2017 2018 2019 2020 2021 2022 Outlook +575 bps Sales ($B) OP (%) OP Improvement STRONG
Slide 31: Strong Market Growth
STRONG MARKET GROWTH Aggregates ($B) Construction & Demolition Concrete ($B) Waste Recycling ($B) $837 $55 $972 $507 $33 $617 2021 2030 2021 2030 2020 2030 Scrap Steel (M tonnes) Non-Residential Construction ($B) 748 $4,484 575 $2,939 2020 2026 2021 2026 GLOBAL DEVELOPMENT DRIVES MP GROWTH Sources:
Slide 32: Favorable Underlying Drivers
FAVORABLE UNDERLYING DRIVERS Increasing Adoption Installed Base Regulation Growing Parts Demand Compliance Enabled Steady Growth in New Markets by Terex Solutions End of Life Replacement • Global adoption of new solutions • Growing fleet • Material quality standards • Developing market penetration •
Slide 33: Uniquely Positioned to Win
UNIQUELY POSITIONED TO WIN • Technological innovations in each vertical Superior Solutions • Application knowledge and engineering to address customer needs • Adaptable distribution provides best path to market Specialized Distribution • Deeply integrated, robust channels, long-standing relationship
Slide 34: Superior Solutions in Aggregates
SUPERIOR SOLUTIONS IN AGGREGATES • #1 globally in mobile crushing & screening • #1 globally in heavy-duty trommels • Top 3 in other new categories A TEREX BRAND Aggregates are fundamental to global development © 2022 Terex Corporation 33
Slide 35: Superior Solutions in Environmental
SUPERIOR SOLUTIONS IN ENVIRONMENTAL • Newly created business in 2015 • Now #3 globally in mobile wood & waste processing • Recent entry into stationary systems Circular economy driving demand for environmental solutions © 2022 Terex Corporation 34
Slide 36: Superior Solutions in Concrete, Handling and Lifting
SUPERIOR SOLUTIONS IN CONCRETE, HANDLING AND LIFTING Tower Cranes Rough Terrain Cranes #1 or #2 in N.A. Concrete Categories #3 in Purpose-Built Material Handlers #1 in Australia Pick & Carry Cranes Well-positioned to support increased Recent new entrant in ProStack telescoping Region-specific leader
Slide 37: Powerful Network of Specialized Distributors
POWERFUL NETWORK OF SPECIALIZED DISTRIBUTORS MP CHANNELS TO MARKET % OF SALES REPRESENTATIVE EXAMPLES Specialized Distributors ~ 55 % (Heavily Concentrated in Our Products) Multi-Line Distributors ~ 20 % (Terex is One of Several Offerings) Direct Sales ~ 25 % (Driven by Terex Commercial Teams) DEALE
Slide 38: Distribution Channel: A Strategic Advantage
DISTRIBUTION CHANNEL: A STRATEGIC ADVANTAGE 23 Years ~2.0 53% 16% Average* Tenure Average* # of Terex Average* Share Top Dealers Who of Top 130 Dealers Brands Covered of Dealer Wallet are 100% Terex ENDURING RELATIONSHIPS WITH HIGH SHARE OF WALLET *Dollar weighted © 2022 Terex Corporation 37
Slide 39: Digitalization Enables Differentiated End Customer Experience
DIGITALIZATION ENABLES DIFFERENTIATED END CUSTOMER EXPERIENCE Remote Service Parts Visual Search Service Calculator TEREX & TCO Connected Dealer DEALERS Inventory Fleet Management e-Commerce Configure Price Quote & Dealer & Customer Portal Digital Order Forms DIGITAL DRIVES PRODUCTIVITY, EFFICIENCY
Slide 40: Materials Processing: Execute, Innovate, Grow
MATERIALS PROCESSING: EXECUTE, INNOVATE GROW Execute ✓ Operational Excellence ✓ Commercial Excellence Innovate ✓ New Category Development ✓ New Product Development ✓ Electrification Grow ✓ Market Growth/Global Adoption ✓ Parts & Service Growth ✓ Inorganic Investments © 2022 Terex Corporation 39
Slide 41: Execution Is Driven by the Operating System
EXECUTION IS DRIVEN BY THE OPERATING SYSTEM 10 Steps to Performance Excellence Rigorous processes 01 Sales & Operational Planning Information Flow applied in all 02 Production Control MP businesses 03 Bill of Materials Information & 04 Sourcing & Supplier Management Material Flow Drives accountabili
Slide 42: Parts Growth Opportunity
PARTS GROWTH OPPORTUNITY Four Interrelated Activities Drive MP Part Sales High Customer Satisfaction and Increased Parts Growth Parts Dealer Engagement Service 2016 2022 Outlook Digital Effectiveness Parts availability Average fill rate Dealer/customer satisfaction PARTS GROWTH ENHANCES OPERATING MA
Slide 43: Purposeful Innovation Fuels Profitable Growth
PURPOSEFUL INNOVATION FUELS PROFITABLE GROWTH Recent new categories 5 A TEREX BRAND MODULAR 25–30% (1) New categories in development 2 Sales from products introduced in the Digital Solutions last 3 years > 100 New product programs in flight (1) Long-term annual average © 2022 Terex Corporation 42
Slide 44: Recent Aggregates Innovation
RECENT AGGREGATES INNOVATION A TEREX BRAND Canica MV2000 VSI Crusher: Modular Solution EvoQuip Falcon 820 Screen: Compact Finishing Screen Finlay LJ-130 Hybrid: Large Mobile Crusher; Dual Power Aquaclear Filter Press: Enables Advanced Water Management SUPPORTS SUSTAINED MARKET LEADERSHIP © 2022 Tere
Slide 45: Recent Environmental Innovation
RECENT ENVIRONMENTAL INNOVATION PRIMARY APPLICATIONS • Land Clearing & Demolition • Construction & Demolition Waste Recycling • Commercial & Industrial Waste Recycling • Compost/Biomass • Forestry/Sawmills/Pulp Mills • Waste to Energy NEW PRODUCT CATEGORY; > 40 NEW PRODUCTS INTRODUCED SINCE 2015 UTI
Slide 46: Handling, Concrete and Lifting Innovation
HANDLING, CONCRETE AND LIFTING INNOVATION Fuchs e-Drive and Battery Electric Advance Charger and Mini-Mix Product Franna FR-17 is a Low-Cost Model That Models Enable Zero Emissions for Lines Support Urban Delivery and Short Will Enable Accelerated Growth in India Material Handling Customers Pours in
Slide 47: Innovations in Equipment Electrification
INNOVATIONS IN EQUIPMENT ELECTRIFICATION Drive Strategy MATURE IN DEPLOYMENT IN DEVELOPMENT Product Type Static/Semi Static Plant Site Mobile/Semi Static Operation On Highway and Site Mobile Terex MP Products • Tower Cranes • Mobile Crushing Screening • Advance Mixer Trucks • Static Crushing, Screen
Slide 48: MP Organic Growth Potential Through 2027
MP ORGANIC GROWTH POTENTIAL THROUGH 2027 MP Sales Target ($B) MP OP Margin Target ~$2.7+ 16.0 - 16.5% 15.0 - 15.3% ~$1.9 2022 Outlook 2027 2022 Outlook 2027 2022 Sales Outlook $1.9B 2022E OP Outlook 15.0%–15.3% 2027 Sales Target $2.7B+ 2027 OP Margin Target 16.0%–16.5% CAGR ~7.5%+ Increase +85–135bp
Slide 49: Leveraging Inorganic Opportunities
LEVERAGING INORGANIC OPPORTUNITIES March 2021 July 2021 April 2022 July 2022 August 2022 Jiading, China MDS, Ireland Cookstown, NI ProAll, Canada ZenRobotics, Finland Powerscreen Heavy Duty Fabrications for Volumetric Robotic Sorting Equipment for Trommels Aggregates & Mixers for Heavy Recycling Chi
Slide 50: Consistently High-Performing Portfolio Primed for Future Growth
CONSISTENTLY HIGH-PERFORMING PORTFOLIO PRIMED FOR FUTURE GROWTH Strong portfolio of market-leading specialty equipment businesses and brands Solid track record of sales growth and margin expansion Industry leading dealer networks enable high market share and sustained growth Continued investment in
Slide 51: Question & Answer
i) TEREX. Question & Answer
Slide 52: Aerial Work Platforms
AERIAL WORK PLATFORMS
Slide 53: Genie | Video
GENIE | VIDEO © 2022 Terex Corporation 52
Slide 54: Profitability Through the Cycle
PROFITABILITY THROUGH THE CYCLE Simon Meester President, Genie
Slide 55: Diverse Addressable Markets
DIVERSE ADDRESSABLE MARKETS SERVING BROAD $15B ADDRESSABLE MARKET Government & Industrial & Emerging Construction Infrastructure Manufacturing Agriculture Markets Adding new markets $6B $2B $3B $2B $1B Favorable megatrends Commercial Utilities Maintenance Material Handling Entertainment Diverse cust
Slide 56: Macro Trends Supporting Demand Growth
MACRO TRENDS SUPPORTING DEMAND GROWTH Fleet Replacement Global Demand Growth(*) Cycle(*) Adoption(*) Growth(*) Fleet Age (months) Developing Markets Aerial Market 1200 Annual Sales 65 200 600 1000 500 (in Thousands) in Thousands) 800 150 (in Thousands) 55 400 600 100 300 400 200 45 50 200 Historical
Slide 57: Established Player, Global Leader
ESTABLISHED PLAYER, GLOBAL LEADER 55 Years #1 or #2 Position 100+ Countries Keeping People in Most Markets Global & Competitive Safe at Height Footprint © 2022 Terex Corporation 56
Slide 58: Genie's Competitive Strengths
GENIE’S COMPETITIVE STRENGTHS Material Lifts Aerial Work Platforms Scissor Lifts Telescopic Boom Lifts Articulating Boom Lifts Telehandlers • Globally recognized brand Our Brand • Extensive and deep experience in developing, testing, validating and marketing of products and solutions that keep peopl
Slide 59: Dramatically Changed Cost Structure
DRAMATICALLY CHANGED COST STRUCTURE Operating Profit ~$90M STRATEGIC SOURCING cost out versus 2020 HIGH COST TO LOW COST COUNTRY FIXED TO VARIABLE COST OPTIMIZED SG&A Legacy Transformed Genie 2.0 IMPROVING THROUGH CYCLE MARGIN PERFORMANCE © 2022 Terex Corporation 58
Slide 60: Genie 2.0: Execute, Innovate, Grow
GENIE 2.0: EXECUTE, INNOVATE, GROW Execute ✓ Operational Excellence ✓ Digitization ✓ Diversity, Talent Development, Retention Innovate ✓ Margin Expansion ✓ Product Development ✓ Footprint Expansion Grow ✓ Superior Customer Experience ✓ Expand Addressable Markets ✓ Portfolio Development © 2022 Terex
Slide 61: Execute – Profitably
EXECUTE – PROFITABLY Continuous Improvement • Strategic cost-out • Lean manufacturing, automation, vertical integration • Portfolio optimization • Flex productivity Standard Work Operational Excellence • Genie Operating System • Agile/digital processes • Manage data through the lifecycle • Planning
Slide 62: Innovate – Profitably
INNOVATE – PROFITABLY New Product Development • Focused on Total-Cost-of-Ownership competitive hybrid and electrified products • Design for manufacturing and supply chain efficiency • Embracing and investing for autonomous future Acculon Energy Investment • Advanced battery technology expertise • In
Slide 63: Innovate – Profitably
INNOVATE – PROFITABLY Mexico Facility Expansion • Investing ~$140M in building 1M sq ft facility in Monterrey • Expect 200 bps of improved margins over next three years • World-class manufacturing system Replicating Genie Operating System • Genie Designs • Genie Quality • Genie Processes • Amplified
Slide 64: Grow – Profitably
GROW – PROFITABLY • Channel (non-construction) • New products • Installed capacity Market • Market growth Share • Ease of doing business • Digitalizing to strengthen relationships • Maximizing parts availability Customer • Optimizing service coverage Experience © 2022 Terex Corporation 63
Slide 65: Continuous Margin Expansion Through the Cycle
CONTINUOUS MARGIN EXPANSION THROUGH THE CYCLE 2022 2027 Target ~14% OP Operating Profit Low-Cost Manufacturing Supply Chain Optimization Value Stream Optimization Leading position New Product Development Operational Excellence Footprint Investment sustained with © 2022 Terex Corporation 64
Slide 66: Genie 2.0
GENIE 2.0 Global leader, well positioned for compounded top- and bottom-line growth Strong growth tailwinds in mature and developing markets Transformative actions taken to improve profitability and predictability through the cycle Investing to remain at the forefront of innovation, digitization and
Slide 67: Terex Utilities | Video
TEREX UTILITIES | VIDEO © 2022 Terex Corporation 66
Slide 68: Terex Utilities: Platform for Growth
TEREX UTILITIES Platform for Growth John Garrison Chairman & Chief Executive Officer
Slide 69: Positioned for Powerful Growth
POSITIONED FOR POWERFUL GROWTH Digger Articulated Telescopic Transmission Pressure Tree Care Green Substation Derricks Aerials Aerials Aerials Drills Aerials Solutions Safety $2B Terex Utilities Advantages ~ 25% Addressable Market In US* Of Sales From Parts & Services • Technology leadership in insu
Slide 70: Accelerating Investments in Net Zero
ACCELERATING INVESTMENTS IN NET ZERO GENERATION TRANSMISSION DISTRIBUTION Installation New Energy Sources Requiring Upgrades, Expansion, Hardening To Support Growing Demand Investments in the North American US Infrastructure Investment & Jobs Act Utility Grid ($B)* Funding for Electrical Infrastruct
Slide 71: Utilities: Execute, Innovate, Grow
UTILITIES: EXECUTE, INNOVATE, GROW Execute ✓ Safety ✓ Strategic Sourcing/Factory Throughput ✓ Operating System Innovate ✓ Product Vitality ✓ All Electric Product Growth ✓ Digital Offering Development Grow ✓ Support Market Growth via Contractors & Tree Care ✓ Expand Share with IOU’s and Public Power
Slide 72: Recent Investments Enable Growth
RECENT INVESTMENTS ENABLE GROWTH Watertown, South Dakota Factory 21 US Service Locations CAPABILITIES IN PLACE TO SUPPORT STRENGTHENING DEMAND © 2022 Terex Corporation 71
Slide 73: Long Track Record of Purposeful Innovation
LONG TRACK RECORD OF PURPOSEFUL INNOVATION • Industry first all-electric • Genie/Utilities collaboration • Digital tools enhance Utility Truck • Improves safety in customer experience • Leverages Viatec Smart PTO and electrical substations • eCom integration enables Navistar’s electric chassis • Exp
Slide 74: Positioned to Deliver Above Market Growth
POSITIONED TO DELIVER ABOVE MARKET GROWTH Capitalize on Accelerating Investment Leverage Capacity to Grow Capitalize on Accelerating Capitalize Investment on Accelerating Investment LeverageLeverage CapacityCapacity to Increase Market Share to Increase Market Share Capitalize Capitalize on on Accele
Slide 75: Financial Overview & Outlook
FINANCIAL OVERVIEW & OUTLOOK Julie Beck SVP & Chief Financial Officer
Slide 76: Reaffirming 2022 Full-Year Outlook
REAFFIRMING 2022 FULL-YEAR OUTLOOK(1) Net Sales ~$4.3 billion SG&A % to Sales ~10.6% Operating Margin ~9.5% Interest / Other Expense ~$50 million Tax Rate ~20.0% EPS $4.00 - $4.20 Share Count ~69.5 million Depreciation / Amortization ~$50 million Free Cash Flow (2) ~$125 million Corp & Other OP ~($7
Slide 77: Financial Strength and Flexibility
FINANCIAL STRENGTH AND FLEXIBILITY Robust portfolio of businesses to deliver accelerated growth Strong financial performance… targeting more than doubling EPS Disciplined capital allocation to support growth and drive shareholder value © 2022 Terex Corporation 76
Slide 78: Portfolio Evolution – Transformed
PORTFOLIO EVOLUTION – TRANSFORMED… 2015 2022 Outlook Materials Processing ~60% of Sales $6.5B Sales ~$4.3B operating profit SG&A 14.0% SG&A ~10.6% Up from 25% in 2015 Operating Margin 5.4% Operating Margin ~9.5% EPS $1.30 EPS $4.00-$4.20 Divested $2.7B in capital ROIC 6.6% ROIC ~20% intensive, low m
Slide 79: Strong Balance Sheet & Liquidity Supports Growth
STRONG BALANCE SHEET & LIQUIDITY SUPPORTS GROWTH Returned $1.8B of Cash to Shareholders in 7 Years(1) ~$1.6B in share buybacks, reducing shares outstanding by 37%, Net Debt ($B) & Leverage net of shares issued for stock-based compensation 3.5x ~$200M of dividends 56% Reduction in Net Debt Reduced Le
Slide 80: Consolidated Financial Targets for 2027
CONSOLIDATED FINANCIAL TARGETS FOR 2027 Strong Sales Growth Driving Industry Leading Financial Performance ~$6.0B+ 13.0% - 14.0% $8.00 - $9.50 +25% Sales Operating Margin EPS ROIC © 2022 Terex Corporation 79
Slide 81: Materials Processing Sales and Operating Margin Targets
MATERIALS PROCESSING Sales and Operating Margin Targets ($ billions) ~$2.7+ SALES ~7%+ CAGR(1) ~$1.9 OP MARGIN $1.6 $1.7 + 85 – 135 bps(1) 16.0% - $1.3 16.5% Expanding into new & adjacent markets 15.0% - 14.2% 14.2% 15.3% 11.4% Developing adjacent product lines Market leading innovation Industry lea
Slide 82: Aerial Work Platforms Sales and Operating Margin Targets
AERIAL WORK PLATFORMS Sales and Operating Margin Targets ($ billions) SALES ~$3.3+ ~6.5%+ CAGR(1) 13.0% - 14.0% $2.7 ~$2.4 $2.2 OP MARGIN ~8.0% 7.2% $1.8 7.0% +500 – 600 bps(1) Improving margins Capturing Utilities growth opportunities ~5% Reflects Pro Forma benefit of ~$90M Moving into new & adjace
Slide 83: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Invest in Core Business • Organic growth, margin improvement, innovation (R&D) • CapEx Target: 1-3% of sales, including maintenance of ~1% of sales Strong Cash Generation & Balance Sheet Dividend(1) Free Cash Flow Target: • Maintain consistent payout policy 75 - 100% Co
Slide 84: Balance Sheet Positions Terex for Long-Term Profitable Growth Through Acquisitions
BALANCE SHEET POSITIONS TEREX FOR LONG-TERM PROFITABLE GROWTH THROUGH ACQUISITIONS Portfolio Objectives Terex Deal Criteria Targeted Impact (EPS) Strategic Fit • Grow Materials Processing $1.00 – Inorganic $3.00 Build Strong Platforms • Expand Utilities Organic • Add Technologies Leverage Core Opera
Slide 85: Consolidated Financial Targets for 2027
CONSOLIDATED FINANCIAL TARGETS FOR 2027 Strong Sales Growth Driving Industry Leading Financial Performance ~$6.0B+ 13.0% - 14.0% $8.00 - $9.50 +25% Sales Operating Margin EPS ROIC © 2022 Terex Corporation 84
Slide 86: Closing Remarks
CLOSING REMARKS John Garrison Chairman & Chief Executive Officer
Slide 87: Compelling Investment Opportunity
COMPELLING INVESTMENT OPPORTUNITY Transformed and diversified industrial leader well-positioned for profitable growth Excellent portfolio of market-leading businesses positioned to benefit from secular megatrends Operating system enables profitability through cycles and high returns on invested capi
Slide 88: Question & Answer
i) TEREX. Question & Answer